T Series ON SALE - Will it ever end?

[Julie]

I am looking at buying a few more T Series for my office. Ive noticed that the T Series has been on sale since January.

Lenovo keeps advertising "on sale until..." , and then, on the next day, they are on sale again for an even lower price.

Are T Series not selling well? This does not build confidence, nor does it motivate my purchase, as each new sale represents a new lower price.

If I wait until the next sale, I should be able to save 32%, based on the rate at which the discount percentages have been increasing for each sale.  Based on my order, it would be like getting 4 for free!

It is just really confusing.

[erik Community SuperMod]

julie, i agree.

this seemingly-perpetual sale has trained both potential and current customers to wait, second-guess, or hold off altogether on a purchase in hopes of a better price or to speculate on newer models/options being released once the current sale ends.   congruent sales don't always have the same prices as the former sale so the logic behind the term "sale" becomes fuzzy and confuses buyers.   i can't tell you how many posts i've read over the years about customers asking about sales, when they will end, and what they should buy dependent upon sale prices.

pushing sale prices of retail products on the home page of lenovo.com gives buyers the immediate feeling of unease and instability upon visiting the site.   apple rarely advertises sales on their home page and they always seem to carry a solid following by their customer base.   lenovo has an outlet area where sale products can reside.

if products are always on sale then what good is the suggested retail price?   at that point the suggestion of a retail price is more of a fiction than an actual figure.   i can't recall the last time i went to a high-end automotive dealer and saw large signs with "25% OFF!" posted on the windshields as this is a tactic usually seen at used car dealers -- and that's the exact image it provides.

it also does not bode well for overall brand and product image.   a solid and reliable product from a stable company should not always have to be on sale -- at least not for four or five months in a row, regardless of one- or two-week breaks in between said sales.

if lenovo wants to improve their image then the perpetual sale tactics needs to stop.   retail prices need to be re-assessed, marketing tactics need to be improved, and sales need to be reserved for actual price-cutting events when necessary.   competing with other manufacturers on price is not the only way to compete.   as soon as lenovo realize this, they will gain more traction in the marketplace.

[Julie]

You hit the nail right on the head Erik! I hope that Mark and others at Lenovo see this. You are so right!

You should be the brand director for ThinkPad!

Thanks for your post (Lenovo should be thanking you too!)

[erik Community SuperMod]

that's kind of you to say.   thanks.

my biggest concern is that the brand image will be damaged by the constant sale prices.   i understand that businesses are in business to make money but if the thinkpad image dies then sales will die with it.   the X300 is likely the precursor of what's to come in terms of quality but the actual perception of this quality will fail if everyone views lenovo as being 'the brand that's always on sale.'

there needs to be a better balance.   if retail prices need to be adjusted to eliminate the need for a so-called "sale" then so be it.   if prices are competitive and there is both service and support to back up a quality product then everything can be balanced out.   apple overcharges every day for their products but customers still buy them because they've found the threshold of what people are willing to pay for their products without having to put them on sale.   lenovo could accomplish the same thing if they were as concerned with the thinkpad image as they are with revenue numbers.

another problem is that it's difficult to recover from perpetual discounts.   i used to give clients a discount when i was first starting out and it was an uphill battle when i needed to increase my prices.   i had to rethink my strategy and be more creative in my price changes so things were less apparent.   if lenovo ever wants to increase their prices then it'll have to be done very decisively as they'll have to fight the preconceived notion that their products are or will soon be on sale again.

but, here's the thing; lenovo is a young company.   they may have to play the silly "sale" game to bring in more revenue to later recycle back into quality, service, and ultimately branding.   this tactic could be temporary and hopefully doesn't affect their image long-term.   i'm willing to give them the benefit of the doubt on this one but am also crossing my fingers hoping that i'm right.

as the saying goes, "you can't keep 100% of the people happy 100% of the time."

[Julie]

... so very true Erik.

The two main players in notebook computing are ThinkPad and MacBook Pro. They started it. Until the Lenovo take over, their price points were pretty much equal.

If Apple can get almost $3,000 for a notebook and achieve record sales, why cant Lenovo get $700 for their notebook?

Dont get me wrong. Aggressive pricing is good. Heck, it is saving me money!  Just long term, I would hate to see the ThinkPad brand die because of it.

Lenovo, listen to Erik! He offers some business schooling that you desperately need.

[billbolton Community Moderator]

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Julie wrote:

If I wait until the next sale, I should be able to save 32%, based on the rate at which the discount percentages have been increasing for each sale. 

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Even a casual observation of the discounted prices on offer from Lenovo indicates that they are going up as the relative value of the US$ falls in world financial system terms.

Cheers,

Bill